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For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.
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>>> Read more: Does Netwealth Group (ASX:NWL) Deserve A Spot On Your Watchlist?
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>>> Read more: Does Netwealth Group (ASX:NWL) Deserve A Spot On Your Watchlist?
